Spain – Cyber attack not enough to halt Codere’s online growthBy Phil - 5 September 2022
Codere Online, a leading online gaming operator in Spain and Latin America, generated revenue of €27.4m in Q2 2022, 36 per cent above Q2 2021, while net gaming revenue was €29.2 mm in the period, 41 per cent above Q2 2021.
Mexico revenue was €10.6m in Q2 2022, 84 per cent above Q2 2021, while Mexico net gaming revenue was €11.9 mm in the period, 85 per cent above Q2 2021. Spain revenue reached €14.1m in Q2 2022, 12 per cent above Q2 2021 which was only partially impacted by marketing restrictions implemented in 2021.
Moshe Edree, CEO of Codere Online, said: “We are very pleased with our results in the first half of the year, particularly with the acceleration in net gaming revenue growth to 41 per cent in the second quarter. This was driven by a very strong performance in Mexico, where net gaming revenue nearly doubled that of Q2 last year, as well as Spain, where net gaming revenue grew 12 per cent in Q2 despite the significant marketing restrictions implemented starting in May last year. In the second quarter, our customer base grew by 29 per cent to nearly 105,000 average monthly active customers. Almost 85,000 customers, 47 per cent more than in Q2 last year, made deposits with us for the first time in the period.”
Moshe Edree, further stated, “Since the end of the quarter we continue working relentlessly to execute our plan and recently applied for an online gaming license in the Province of Cordoba, the second most populated in Argentina. We have also reached a significant milestone in the country by becoming a Main Sponsor of Club Atlético River Plate and the Codere logo has been placed on the front of the shirt.”
Oscar Iglesias, CFO of Codere Online stated: “Our expectation that revenue growth would accelerate throughout this year has started to materialize, with the significant net gaming revenue uplift in the second quarter. We believe that we are on track to deliver our full year net gaming revenue outlook of €110 to 120m as we continue executing our plan during the second half of the year.”
In Q2 2022, Codere Online was the victim of a cyber-related fraud incident which resulted in approx. €0.7m in payments being made by the Company to the bank account of a party who had impersonated one of Codere Online’s vendors. Codere Online believes this was an isolated event and no evidence has been found of any related additional fraudulent activity or any employee criminal involvement in the fraud itself;
The company has recorded a one-time pre-tax charge of approx. €0.7m in Q2 2022 and continues to pursue the recovery of the amounts transferred.
On August 5, 2022, Codere Online submitted all required documents in furtherance of its application for an online gaming license in the Province of Cordoba (Argentina); Up to 10 online gaming licenses may be awarded and a total of 10 parties have submitted applications, including Codere Online.
Codere said: “We expect a decision to be taken by the government in September, licenses to be awarded before year-end and, if awarded a license, to be operating in the Province of Cordoba soon thereafter.”
Codere became a Main Sponsor of Club Atlético River Plate in Argentina, further strengthening the relationship that the Company has had with the Club since July 2021. Among other things, the Codere logo has been placed on the front of River Plate’s shirt, enhancing the visibility and public awareness of the brand in the country and across Latin America.